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Power
Higher allocation needed for power distribution infra in Budget 2021: Experts
The Centre needs to come up with higher budgetary allocation for power distribution infrastructure in the upcoming Union Budget, sector stakeholders and experts said. ICRA has recommended higher budgetary allocation to strengthen the power distribution infrastructure and improve the financial viability of the distribution segment, including the implementation of amendments to the Electricity Act. The government should take measures to augment fund availability and ease land acquisition challenges with a view to achieve the renewable capacity targets, it said. Further, the ratings agency has also suggested support measures to promote investments in the roof-top solar segment. Sector experts have also sought long-term policy measures to promote domestic module manufacturing. Recommendations have also been made to promote investments in transmission infrastructure for harnessing power from renewable projects.
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India moved from power deficit to surplus under Modi govt: Union minister
Union minister R K Singh said India has become power surplus under the leadership of Prime Minister NarendraModi over the past six years and is also witnessing the highest growth rate in renewable energy in the world. "There is no power deficiency in the country. We have a maximum demand of 1.85 lakh MW of electricity but the present availability is 3.74 lakh
MW," Singh said at a function here. The Union minister of state for power was speaking after signing of memorandum of understanding (MoU) between J&K government and NHPC for implementation of Rs 34,000 core 850 MW Ratle HEP and 930 MW Kirthai-II HEP and execution of Sawalkot HEP (1856MW), Uri-I (Stage-II-240 MW) and Dulhasti (Stage-II-258 MW) power projects here. "Earlier, our country was deficient in power but after the Modi government took over in 2014, we have doubled the power generation to make the country a surplus in power generation," he said. He said there is more investment from the private sector rather than the public sector in the generation of electricity.
Govt to focus on loss-making discoms for next 3-4 yrs to achieve '24X 7 powers for all': Official
The government's spotlight will be on electricity distribution utilities or discoms, which are mostly state-run and cash-strapped due to losses, to achieve the goal of 24X7 power for all, a senior official said. There is stress in the power sector due to the inability of discoms to make timely payments for supply of power by gencos (power generating firms), which affects the entire value chain. Participating in a webinar organised by the Institute of Directors, Ashish Upadhyaya, additional secretary in the Ministry of Power, said the major focus of the central government will be on the distribution sector for the next three-four years. Talking about the continuous losses of discoms, he said there is a gap between the actual rate of supply of power and the cost recovered from consumers. According to power ministry data, discoms' total outstanding dues stood at over Rs 1.42 lakh crore as of November 2020.
India’s Power Demand Breaks Record at 185.82 GW on Jan 21: Sahai
The all India power demand on Jan 21 reached an all-time high of 185.82 GW beating the previous high from December 30, 2020, at 182.89 GW. The all India power demand on Jan 21, 2021, reached an all-time high of 185.82 GW beating the proviso demand records that were set on December 30, 2020, at 182.89 GW, according to SanjivSahai, Secretary at the Ministry of Power. In a tweet making the announcement, the secretary stated that “Power demand continues to surge. Yet another record – all India demand: 185.82 GW ie 185, 822 MW at 09:35hrs ie 20/01/21. It has crossed previous all India demand of 182.89 GW ie 182, 888 MW on December 30, 2020.” According to data provided by the Ministry of Power, the peak power demand met (the highest supply in a day) during January last year stood at 170.97 GW. Which many believe that the rising power demand shows perk up in economic activities leading to higher commercial and industrial demand which was affected due to the coronavirus pandemic. The power demand recovered from September 2020 onwards. Peak power demand met grew at 1.7 percent in September, 3.4 percent in October, 3.5 percent in November and then 7.3 percent in December.
Madhya Pradesh sets up maximum solar pumps under government scheme: Minister
Madhya Pradesh has set up largest number of solar pumps in the country under the Pradhan MantriGaribKalyanRojgarAbhiyan, state New and Renewable Energy Minister Hardeep Singh Dang said. The scheme was launched by the central government last year for providing employment to migrant labourers who came back to their na-
tive places during COVID-19 lockdown, he said. "A total of 3,224 solar pumps were set up against the target of 3,490 in 24 districts of the state to achieve 92.4 per cent success under the scheme, which is maximum in the country," an official release quoting Dang said. Under the scheme, migrant labourers in 116 districts of six states Madhya Pradesh, Rajasthan, Uttar Pradesh, Bihar, Odisha and Jharkhand - were identified for providing them employment. In MP, 24 districts were included in the scheme, under which setting up of solar pumps, construction of community toilets, anganwadis, wells, rural mandis, domestic animal sheds, panchayat buildings and tree plantation activities were taken up for providing jobs to migrant labourers, Dang said.
Government asks CERC to relieve power plants delayed due to force majeure from transmission levy
The government has invoked special powers to direct electricity regulator to make changes in regulations freeing power plants delayed due to justifiable reasons from paying penalties to associated transmission projects. The penalties would now be borne equally by all beneficiary discoms of a generation project, as per the directions issued by the Union power ministry to the Central Electricity Regulatory Commission (CERC) under section 107 of the Electricity Act 2003. While power generation and transmission companies welcomed the relief, distribution companies said the move asking them to pay for delay in generation projects came as a shock to them. “Penalties for delay in COD (commissioning) of generating stations, or for delay in completing transmission system, or operationalising the LTA (long-term agreement) shall invite penalties to be paid to CTU (central transmission utility),” the central government directions to CERC to amend Sharing of Inter-State Transmission Charges and Losses Regulations, 2020 said. Power transmission projects attached to delayed generation plants are considered ‘deemed commissioned’ and are liable to compensation but the complexity in arrangement makes it difficult to claim any amount.
Consumers top priority of govt, asserts energy minister Shrikant Sharma
UP power minister Shrikant Sharma reiterated that consumers were on the top priority of the state government and the department should strive to take all possible steps in addressing their complaints. Addressing a seminar organised by NTPC power management institute, Sharma said that the distribution companies should try to get Know Your Customer (KYC) done of all power consumers and take their feedback. He also maintained that an uninterrupted power was only possible with the help of consumers. The minister said that managing directors of the distribution companies should ensure that consumers get electricity bills on time. He reiterated that the discoms should ensure that consumers be provided downloadable bills so that no anomaly is reported. He also asked officials to ensure tripping free power supply in the National Capital Region (NCR) as well as other districts.
Notably, CESC had called off its proposal on the demerger of its power generation and distribution business two years ago. The demerger proposal was withdrawn in November 2019. Total income of the company had increased by 3.2% at Rs 11,217 crore last fiscal, while net profit grew 9% at Rs 1,306 crore. Power utility CESC, the flagship of RP-SanjivGoenka Group, has decided to consolidate its power distribution business, other than in its op-
erations in Kolkata and adjoining areas, under a wholly-owned subsidiary of the company. Eminent Electricity Distribution, the whollyowned subsidiary of CESC, become a subsidiary of the company with effect from July 1, 2019. In a stock exchange filing, the power utility said its board has decided to “reorient and reorganize” the power distribution business of the company under Eminent Electricity Distribution, as its distribution arm and, over some time and subject to applicable laws, consolidate in Eminent all investments of the company in distribution business (other than in its operations in Kolkata and adjoining areas). Notably, CESC had called off its proposal on the demerger of its power generation and distribution business two years ago. The demerger proposal was withdrawn in November 2019. Total income of the company had increased by 3.2% at Rs 11,217 crore last fiscal, while net profit grew 9% at Rs 1,306 crore.
India created a central power transmission utility, separating the business from state-run Power Grid Corp of India (PGCIL). The Central Transmission Utility of India has been incorporated and a certificate of incorporation had been issued for the same, sources said. Hiving off of electricity transmission system planning business from PGCIL had been a long pending demand of the industry for fair bidding of transmission lines. The move will help PGCIL diversify to other businesses and comes just in time when the government has kicked off a power distribution programme starting with the union territories. The government had in June last year directed Power Grid NSE -0.37 % Corp to immediately set up Central Transmission utility (CTU) as a 100% subsidiary with separate accounting and board structure which would identify and plan transmission network in the country. Private power transmission companies have alleged that PGCIL purposefully mismanages transmission planning so that the lines get delayed and are given to the state –run firm on nomination basis. On the other hand, PGCIL has been saying the transmission planning process is collaborative and transparent and there is a well-established procedure of planning of transmission system, under which transmission planning is carried out by the Central Electricity Act (CEA) in association with CTU, POSOCO and other stakeholders.
India needs to add massive amount of solar and wind power capacity this year to meet its first target
The government of India has set a massive target of achieving 175 GW in renewable energy capacity by 2022. Prime Minister Narendra Modi has further increased the target to 450 GW renewable energy capacities by 2030. With just one year to go to meet the first target, India’s renewable industry will have all eyes on Finance Minister Nirmala Sitharaman on February 1, as she presents the Union Budget with the hope of measures that will help the country achieve the target. According to a report by the International Energy Agency, India is expected to be the largest contributor to the renewables upswing in 2021, with the country’s annual additions almost doubling from 2020. “A large number of auctioned wind and solar PV projects are expected to become operational following delays due not only to Covid-19 but also to contract negotiations and land acquisition challenges,” said the report. To boost the adoption of solar energy across the country, the industry expects the government to withdraw the restrictions on net metering. Net metering is basically a system where credit is offered to residential and businesses, which are creating excess electricity with their solar panels and sending it back to the grid. The Indian government has proposed that there will
be a withdrawal of Net Metering over 10 KW load for any consumer. This would further boost the rooftop solar installations, which currently stand at just 4.6GW.
New net metering rule will deter rooftop solar adoption, says NSEFI
The net metering provision under the recently notified Electricity (Amendment) Rules, 2020 has left rooftop solar developers worried. The provision restricts net metering up to 10 kW capacity in India and mandate gross metering above 10 kW, which, when implemented, will have a drastic impact on the entire rooftop solar industry, say developers. Under net metering, electricity generated by the solar rooftop system is first utilized by the consumer to meet their internal/ captive requirements. Excess electricity, if any, is exported to the grid. Subsequently, when the consumer imports power from the grid, the exports are adjusted against the imports, lowering the electricity bill. Under gross metering, consumers are required to sell the solar electricity generated to the Discom–at a tariff (feed-in tariff) which tends to be lower than the rate at which they buy electricity from the Discom. The difference in rates for the electricity supplied to the grid and electricity purchased from the Discoms puts the consumers at a disadvantage. Developers’ body National Solar Energy Federation of India (NSEFI) says the new net metering restriction will prevent high-load industrial consumers from switching to solar and has sought the power ministry’s intervention to withdraw the restriction of 10kW capacity for net metering under the Rules 2020.
Gujarat shows the way in solar rooftop power generation
Gujarat, the home state of Prime Minister Narendra Modi, is leading the country in solar rooftop energy generation (domestic) with more than 50,000 such plants coming up across the state, according to the Ministry of New and Renewable Energy (MNRE). Gujarat is the only state that offers a silver lining in this otherwise gloomy scenario. The state recently introduced a new solar energy policy for 2021 that allows the domestic electricity consumers to commercially lease their rooftops for power generation purposes. At the beginning of 2021, Gujarat introduced a new 5-year solar power policy, which allows the consumers to rent their premises or roofs to third parties for electricity generation. The decision is likely to encourage further the installations and use of renewable energy in Gujarat. Already, Gujarat ranks top in the list of states with most number of solar rooftop plants. Gujarat is leading the renewable energy movement in India as of today, suggests the data. The western state has more than 60% (63.68 percent) or 50,915 solar rooftop installations in the country. This account for about 177.67 MW power generation in the state each year. Similarly, Maharashtra and Tamil Nadu have higher installed capacities of about 40 MWs together.
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Government clears 8 hydropower projects on Indus in Ladakh
The government has cleared eight hydropower projects of 144 MW on the Indus river and its tributaries in Ladakh, the highest so far, sources in the Jal Shakti Ministry said. At present, there are several small projects, with a collective capacity of 113 MW on Indus in Ladakh, and the new projects will have much more capacity than those constructed so far, a senior official added. The official said the new projects have been cleared by the Central Water Commission as well as the Indus Commissioner after a separate Union Territory of Ladakh was announced last year. These projects will come up in Kargil and Leh districts of Ladakh. Because of its topography, it is not feasible to construct big hydropower projects in the Ladakh region.
